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When and How to Pay a Blogger

Tread Carefully When It Comes to This Delicate Practice

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Josh Bernoff
Josh Bernoff
In what is easily the most contentious issue I've dealt with recently, the question of whether it's ever OK to pay a blogger has reared its ungainly head. The recent stir started last holiday season when Sears/Kmart paid start-up Izea to send bloggers on shopping sprees. More recently, Ford loaned Fiestas to bloggers to get coverage. The FTC weighed in with guidelines. Andy Sernovitz, author of "Word of Mouth Marketing," is having fits. BusinessWeek stirred the pot by labeling it "Blogola."

When my colleague Sean Corcoran and I researched this topic, we realized that this practice, which we call "sponsored conversation," is here to stay. Some bloggers are journalists and some others act like journalists -- those will adhere to tight ethical standards on gifts. Other bloggers will take money to write anything and have no credibility -- you don't want to pay them, since no one believes them.

But there's a whole class of people now with a following: bloggers who just write what they believe. Mommy bloggers like Jessica Smith, for example. These bloggers are already reviewing products in exchange for loans or donations of sample products. Bloggers gotta eat, too. Should they take cash to write about products? Should you pay them?

If you don't want to lose your job -- and if you want to retain any credibility -- you should move forward very carefully here. We strongly recommend that you heed these key elements of the FTC rules:

  • Advertisers must disclose "material connections" between themselves and their endorsers that might "affect the weight of credibility of the endorsement" (i.e., if you compensate or pay in any way, you must disclose that).
  • Endorsements by bloggers must "reflect honest opinions, findings, beliefs or experience" of the endorser.
  • Both the marketer and the blogger can be held liable for misleading or false statements made by the blogger about the brand.

But do it right, and you can get people with a following writing about you in their own voice -- a powerful persuasive force. As Sean noted in his recent post, the key here is transparency and authenticity. Here's an excerpt of our recommendations:

Know the rules and educate everyone involved. Before you even think of dipping your toe in the water you will need to familiarize yourself with all of the necessary rules, including the existing FTC guidelines, the proposed updates to those guidelines and Google's policy on the use of no-follow links. Also take note that other countries such as the U.K. have have stringent policies on this subject as well. Get legal involved upfront and make sure anyone working on it is educated on the subject.

Mandate absolute disclosure and transparency. We have preached this from the beginning as it is by far the most important rule. The FTC's guidelines are clearly about deterring deceptive advertising, a practice you shouldn't be involved in anyway. Make sure any and all bloggers you work with make it VERY clear to their audience that your brand is involved in the development of the content. If you fail to do this you will put yourself at risk for not only a bad PR mess but legal trouble as well.

Ensure authenticity. You must allow bloggers to speak freely and authentically -- not just because the FTC requires it but because credible reviews are better for your business. Just as consumers find product reviews on e-commerce sites more credible when negative reviews are included, consumers will find reviews about your products more credible when the reviewer is allowed to speak about it in their own voice. This is the real power of working with bloggers -- to get them to talk freely about your brand with their community, not to use them as a megaphone to spin your message. If you're not comfortable letting go of your brand then sponsored conversations aren't for you (and you may want to revisit your overall social media strategy).

I don't expect all you gentle readers to agree with this -- it's too controversial a topic. But paying bloggers is here to say. So if you do it, do it right.

~ ~ ~
Josh Bernoff is the co-author of "Groundswell: Winning in a World Transformed by Social Technologies," a comprehensive analysis of corporate strategy for dealing with social technologies such as blogs, social networks and wikis, and is a VP-principal analyst at Forrester Research. He blogs at blogs.forrester.com/groundswell.

22 Comments
Subscribe to comments on: When and How to Pay a Blogger
  By DAVID | NEW YORK, NY May 26, 2009 11:00:47 am:
I strongly agree and think there's a big difference between what Scott Monty is doing at Ford (providing product to allow bloggers to interact and review it) which is transparent on its face and the practice of paying bloggers to post which is misleading even when the paid nature of the endorsement is revealed. Obviously accepting a car for six months biases the recipient, but that bias is intuitively obvious to consumers. The bias of paid blog posts is more insidious and less obvious.
  By ElisaCam | Palo Alto, CA May 26, 2009 11:14:53 am:
Absolutely agree that there are ways to do it right, and ways to do it wrong. And that not all interactions or programs are the same. Paying someone to endorse something is not a "sponsored conversation", for example...it's just a paid endrosement. A very diverse set of marketing activities are going on and new ones being invented every day. Other media channels, not just the Internet, have branched out into new ways of promotion...product placement has become ubiquitous alongside more traditional advertising and critic/journalist outreach methods, for example. IOW: it's not unique to the blogosphere.

Those who want to be taken seriously and retain their credibility (both on the brand AND blogger side) need to establish standard ethical practices. I think it's appropriate that the FTC guidelines assign responsibility to the advertiser and the publisher...as it should be

For BlogHer, our policies focus on three things:

1. Disclosure
2. Clear physical separation of editorial and advertorial
3. Context

We outlined what are policies are, how we execute them, and why we set them in this post:
http://www.blogher.com/baby-mammoths-and-baby-industry-how-blogher-separates-editorial-advertising

The goal, in the end, is to provide value to the advertiser, while safeguarding the blogger-reader relationship. We think it can be done.
  By GeekMommy | Aurora, CO May 26, 2009 11:37:42 am:
It will be a relief when this stops being a story.

You summed it up pretty concisely: "the key here is transparency and authenticity"... Whether it's the blogger, the agency responsible for connecting the company & the blogger, or the company itself - those 2 elements are critical.

I wish someone would take the time tho to focus on the real purpose behind the FTC guideline revisions: those who are intentionally using the 'blog format' to push scams. Sites like this: http://dropweightfast.com/ (found using Google search acai+berry+colon) are the reason that the FTC regulation is needed. Because there are people scamming individuals out of money using a "fake blog format" to get their money. Because the average person isn't going to pursue a lawsuit for losing $50-100 on a scame - but the FTC needs to be able to go after these con artists on behalf of the average consumer.
  By chrisstipp | Phoenix, AZ May 26, 2009 01:02:19 pm:
A blogger who is a television personality I know is part of the Ford Fiesta "movement." Since the only interaction I have with this personality is Twitter there is a frustrating, angering and, frankly, pathetic trend I see when this person tweets about their Ford Fiesta experience:

1. In a 140 characters this person is able to gladly extol the virtues of their Ford Fiesta

2. They are able to escape having to claim ("Hey, by the way, if you're new to this stream this is a paid advertisement!") the impetus for the tweet

3. The hash tag itself, which I assume is their way of telling their corporate sponsor that they're promoting their product, takes up a large percentage of that tweet, thus, the ability to tell people you wouldn't be talking about a Ford vehicle if it weren't for this donation is limited.
  By jeffjayne | Lawrenceville, GA May 26, 2009 01:25:08 pm:
This is an old issue in a new suite of clothes. Why is this different from Paul Harvey endorsing a product? Did he provide a legal disclaimer before every commercial? In the beginning a few may have thought if it is good enough for Paul Harvey then it is good for me. Paul Harvey, Ed McMann and Jack Benny built many companies brand familiarity into brand trust. An audience accepts the idea that an entertainer receives compensation to support a product. The support does not cause us to question the credibility of the entertainer. Why would anyone consider a Blogger to be anything different from an entertainer? To do so is naive. Sure you can say the origin of the medium are ideas passed along by from one person with genuine convictions. Sorry to be skeptical; most people over 25 understand all points of view are for sale in some way. Enjoy the entertainment. Why do we afford the entertainer any more credibility than their vulnerability to greed may allow?
  By dmourey | Rochester, NY May 26, 2009 01:50:46 pm:
Remember payola, paying DJ's to play music, this is payola reborn. If a person is getting paid to review a product or service and doesn't disclose that everytime, they are engaging in payola.

How about a #pdreview for each paid tweet. Ethical people who want to be transparent about it will comply. Those who don't, will not and will be exposed.

There are probably plenty of people who will still read a paid review, especially for the people who are currently transparent. Probably won't affect them at all.

What do others think?
  By jbernoff | ARLINGTON, MA May 26, 2009 01:56:14 pm:
The intelligent blog reader needs to be able to say, looking at a post, one of the following:

- This is obviously a scam.
- This is the person's opinion, unswayed by any payment.
- This is the preson's opinion, but they wrote the post after receiving payment.

So work with bloggers with the understanding that they'll let everyone know it's the the third.

I don't see why there is any distinction between giving something of value (e.g. use of a car for 6 months) vs. direct payment. That's not where to draw the line. Presence or absence of disclosure and authenticity are where to draw the line.
  By tedmurhy | Orlando, FL May 26, 2009 02:25:20 pm:
The biggest challenge this industry faces is lack of disclosure standards. There is no universal form or format for disclosure, just an agreement that it should happen... but what does that actually mean?

At IZEA we have pioneered standardized, machine readable disclosure through our disclosure badges on SocialSpark. Our system machine validates disclosure in each post and every blogger that participates discloses in the same way. These machine readable disclosures allow us to provide the advertiser with a disclosure audit and compliance with FTC guidelines.

http://izea.com/disclosure-audit/
  By rianoneill | San Francisco, CA May 26, 2009 04:22:31 pm:
HA! Who knew that a stodgy government report could be so damn funny? Thanks for the link. My favorite excerpt, which I shall call the "Set It And Forget It" clause:

"EXAMPLE 4: A well-know celebrity appears in an infomercial for an oven roasting bag that purportedly cooks every chicken perfectly in thirty minutes. During the shooting of the infomercial, the celebrity watches five attempts to cook chickens using the bag. In each attempt, the chicken is undercooked after thirty minutes and requires sixty minutes of cooking time. In the commercial, the celebrity places an uncooked chicken in the oven roasting bag and places the bag in one oven. He then takes a chicken roasting bag from a second oven, removes from the bag what appears to be a perfectly cooked chicken, tastes the chicken, and says that if you want perfect chicken every time, in just thirty minutes, this is the product you need. A significant percentage of consumers are likely to believe the celebrity's statements represent his own views even though he is reading from a script. The celebrity is subject to liability for his statement about the product. The advertiser is also for misrepresentations made through the endorsement."
  By STEPHANIE | LEONIA, NJ May 26, 2009 04:24:22 pm:
Bloggers represent a new publishing paradigm, which makes this debate so tricky. Entities like the BlogHer community are doing a great thing by creating a stand-alone section for sponsored content. However, there are many independent bloggers who function as both publisher AND editor and are not (and may never) create separate blogs for product reviews or sponsored posts. I think it's fine to pay bloggers for some services (consulting, promotional partnerships, giveaways without a product review attached to the giveaway)but never EVER to review product -- disclosure or not. Marketers and their PR teams should provide the product gratis, let the blogger experience it (and disclose that she got it gratis), and be prepared to take their lumps if the blogger doesn't like it. But if no money changes hands, there is integrity on both sides. I posted about this recently, though the real gold is in the comments -- please visit and weigh in: http://ssmirnov.wordpress.com/2009/05/22/are-bloggers-publishers-or-editors-and-why-it-matters/
  By esd1 | Washington, DC May 26, 2009 04:57:47 pm:
From the lowly viewpoint of a scavenger gleaning from MTurk and Craigslist jobs posts, I can tell you that a significant percentage of the "jobs" or "Hits" are asking for a blog post or Tweet that mentions a certain website / service / product. And obviously if it's MTurk we're talking ridiculously small compensation for a blog article.
It's just the Spamola of Blogola. Of course I'm in favor of ethical disclosure, but that's not gonna happen in the web marketplace.
A fun diversion is to ask, at what point do you seriously begin to apply the ethics rules? Do you look at the largeness of the compensation given to the paid blogger, as in automobile vs. a $0.50 Hit on MTurk? Do you look at the cost or value or impact of the item / service / opinion being positively (or negatively) blogged about?
Why is there concern about ethical disclosure in blogs at this time? Have we agreed that NYT and BG and DP and LAT are all the horses we should shoot, leaving only blogs as the new factual totems, trustworthy authorities on anything from products to political opinions?
  By pshoulahan | SAN DIEGO, CA May 26, 2009 05:05:13 pm:
Hey, does anyone want to blog about us? :-) Check out www.AdJack.tv and send us a note or......you can write a clever blog.

Thanks

Patrick Houlahan
VP Business Development
www.AdJack.tv
  By mtlb | NJ, US May 26, 2009 06:17:40 pm:
"Bloggers who just write what they believe."

Hardly new. That group's been around long before the PayPerPost crowd ever showed up.
  By ttuerff | Phoenix,, AZ May 26, 2009 07:13:46 pm:
I have a friend who's driving one of the Fiestas around, and has somehow figured out a way to film herself while driving the thing. Within an hour of heading for home with her car, driving out of Chicago, the car started falling apart. The rubber seal holding in one of the windshields started thumping against the side of the car. She fixed it herself, again, on camera, and posted the whole adventure on line. Ford didn't try to take the video down, so I have no problem with them giving people cars for six months of recording the good and the bad.
  By rjw2116 | New York, NY May 26, 2009 10:14:40 pm:
I think people are thinking way too much about this than is needed. If a marketing company/brand is paying a blogger to write about their product, that blogger should disclose that in their posts. Let the reader decide whether to trust it or not.
  By mcmilker | LONG BEACH, CA May 27, 2009 10:02:02 am:
I agree with several other commenters. This is an old issue in a new venue. Print publications review products in their publications all the time. Readers beleive they scour the streets to find them unaware that they arrive nice wrapped in a press kit of their desks on a weekly basis.

I beleive the issue is real, but it exists beyond the blogsphere FTC needs to take a broader view and ask for transparency in all venues. They will be doing everyone a favor as blogger reviews will become less than worthless to advertisers if they fall under a black cloud. I wrote more about this issue on my site at http://mcmilker.wordpress.com/2009/04/22/the-ftc-has-it-right-%E2%80%93-agencies-have-it-wrong-on-paid-product-reviews/

Good topic!
  By jeffjayne | Lawrenceville, GA May 27, 2009 12:20:30 pm:
Disclosure is good within reason. How much should we regulate to protect the majority from the consequences suffered by the ignorant and uninformed? Is it necessary to regulate our behavior in place of common sense? As we embrace all that is politically correct we are going out of our way to protect people's feelings and to protect them from the results of their actions. For example; if you based your car buying decision on Consumer Reports and a review in Road and Track, Edmunds.com would not exist. Should those reviews be regulated more than they are now? Do we want to replace critical thinking with regulation? Citizens will be gullible because laws have removed the need for common sense. Fortunately we still have enough common sense to be skeptical of most sources of information. Please don't expect the FTC to replace informed skepticism with regulations.
  By gunther | Los Angeles, CA May 27, 2009 12:32:27 pm:
Excellent post, Josh. You would think that these days full disclosure, transparency and authenticity would preempt the issues associated with the likes Sears/Kmart and Ford. It seems that part of the problem lies with the legitimacy of the bloggers themselves, and with the language the FTC uses for its guidelines, which is often nebulous or just plain confusing. The latter will be discussed in an upcoming article I've written with an IP/eCommerce attorney for iMedia Connection.

Best,

Gunther Sonnenfeld
http://www.twitter.com/goonth
http://www.welcometonow.blogspot.com
  By maggielmcg | Rockville, MD May 28, 2009 12:05:10 pm:
I've been thinking and blogging about this a lot lately--and the more I think and blog about it, the muddier the whole thing becomes to me.

Chris Brogan read one of my posts and left a really good comment, and actually went back to his own blog and added a disclosure as a result of reading mine:

http://www.mizzinformation.com/2009/05/wheres-line-between-blogging-and.html

If nothing else, this whole debate is inspiring a lot of great thoughts, posts and comments.
  By MANDY | PHOENIX, AZ May 29, 2009 05:55:24 pm:
This very issue is why when we starting managing social media over 10 years ago we did a few things that have always kept us within the guidelines - current and future. First, we have a compliance officer on our team - legal guru with SEC licensing and degree - she has always kept our internal and external teams aware of the laws, regulations, and changes via a weekly update. Secondly, we tell our clients to allow TRUTH - good or bad - in all posts - too bad if someone doesn't like your product - it's "social" afterall. And lastly, we hire social media positions for our clients from a pool of already influential, and already in favor of, our clients. That way, they already have a fan base, and already have a position of favor in most cases of our clients.
  By MANDY | PHOENIX, AZ May 29, 2009 05:55:37 pm:
This very issue is why when we starting managing social media over 10 years ago we did a few things that have always kept us within the guidelines - current and future. First, we have a compliance officer on our team - legal guru with SEC licensing and degree - she has always kept our internal and external teams aware of the laws, regulations, and changes via a weekly update. Secondly, we tell our clients to allow TRUTH - good or bad - in all posts - too bad if someone doesn't like your product - it's "social" afterall. And lastly, we hire social media positions for our clients from a pool of already influential, and already in favor of, our clients. That way, they already have a fan base, and already have a position of favor in most cases of our clients.

Amanda Vega
http://www.amandavega.com
  By srpatterson | Columbus, OH July 18, 2009 12:42:29 am:
Hard to believe there is still a debate about this topic. Blogging is so mainstream and encompassing of so many areas of society, providing products to bloggers for review is not an issue in the least. IMO

http://FreeAcaiBerry.org
:

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